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Plant Design & Economics
Cost Estimation
GATE 2016
Medium

Compare two distillation designs. P: installed 150 lakh, cooling water 6 lakh/yr, steam 16 lakh/yr. Q: installed 120 lakh, cooling water 8 lakh/yr, steam 20 lakh/yr. Annual fixed charge=12% of installed cost. The total annual cost (lakh/yr) of the better option is

  • 40
  • B42.4
  • C92
  • D128

Explanation

P: 0.12×150+6+16=18+22=40. Q: 0.12×120+8+20=14.4+28=42.4. P is better (lower) at 40 lakh/yr.

Source: GATE CH 2016 (2016)

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